Woburn Special Needs Planning Attorney
If your family includes a child or other relative who is disabled, you may be surprised to find out that your situation isn’t unusual. According to the CDC, 26 percent of adults in the U.S. (one in 4) have some type of disability. It’s important to put a plan in place so that you can protect your loved one’s present and future lifestyle.
Types of Special Needs
There are four categories of special needs:
Physical special needs such as muscular dystrophy, chronic asthma, epilepsy, or congenital defects
Developmental special needs such as Down syndrome, autism spectrum disorders, dyslexia, cerebral palsy, or fetal alcohol syndrome
Mental health special needs, including attention deficit disorder (ADD), attention deficit hyperactivity disorder (ADHD), bipolar disorder, or schizophrenia
Sensory impairment such as blindness or deafness
There are people with minimal disabilities who can lead relatively typical lives with help from appropriate medical, educational, and/or mental health support. There are also many people who have more severe disabilities, making them unable to work or even socialize. Some may require assistance with daily household or hygiene tasks, and others may need long-term, constant care. In most cases, people with special needs will require some measure of financial support.
Special Needs Trust
A special needs trust, also known as a supplemental trust, is established to hold money intended to enhance the life of your loved one while protecting their eligibility for government programs meant to protect them. There are two types of these trusts:
Third-party trusts are established by a parent or loved one for the benefit of a special needs child.
Self-settled trusts are created with the child’s own assets, often an inheritance or settlement.
As an experienced Massachusetts special needs trust attorney, Matthew Karr will help you pick the most dependable person as a trustee. In the trust document, you provide directions to the trustee as to how the money in the trust is to be distributed. The trustee will then be tasked with managing the flow of the trust’s assets to meet your loved one’s needs.
Benefits of a Special Needs Trust
A special needs trust is irrevocable, meaning you (the person who created the trust) will have no access to the money it holds during your lifetime. This trust will:
Protect your funds from taxation, creditors, and judgments against you
Provide funding for “extras” for your special needs loved one like going to the movies or travel
Keep your loved one’s eligibility for one or more of the following government-funded programs:
-MassHealth (a government program that provides health insurance to people with disabilities)
-Supplemental Security Income (SSI)
-Social Security Disability Income (SSDI)
-Federal Food Stamps and housing subsidies
This means that government programs will cover doctor visits, prescription drugs, hospitalizations, and a stipend for rent and food, while the funds in the special needs trust will be there to cover things like:
Private transportation costs
Treats, day trips, entertainment, short vacations
Extra clothing
Pet costs
Computer equipment
If your loved one with special needs receives an inheritance, a monetary gift, or a personal injury settlement, the special needs trust is the perfect place to hold that money because your loved one can continue to receive the government benefits they need.
Funding the Trust
A trust is basically an empty box that must be filled with assets. Families must consider how to fund the trust and at what levels. Funding must be realistic in relationship to the needs of the loved one. If a family doesn’t have enough resources to adequately fund a trust, one option may be to consider funding it with life insurance.
Choosing the Right Trustee for Your Special Needs Trust
Selecting a trustee requires careful consideration, as this person will manage assets and make financial decisions that directly affect your loved one’s quality of life. The trustee must understand both the legal requirements of administering a supplemental needs trust and the unique needs of the beneficiary. A well-intentioned but uninformed trustee can inadvertently make distributions that jeopardize eligibility for Supplemental Security Income or other government benefits.
Many families initially consider appointing a family member, which offers the advantage of personal familiarity with your special needs child’s preferences and routines. However, managing a trust demands time, financial literacy, and a willingness to maintain detailed records. Some parents choose professional trustees or corporate trust departments that specialize in special needs planning, particularly when no suitable family member is available or when the trust holds substantial assets.
A hybrid approach appoints a family member as co-trustee alongside a professional, combining personal knowledge with administrative expertise. Our Woburn special needs planning attorney helps families evaluate these options based on their specific circumstances. During your consultation, we discuss the trustee’s responsibilities, compensation considerations, and succession planning to ensure continuous oversight throughout your loved one’s future. The goal is to identify someone dedicated to protecting both the trust funds and the beneficiary’s access to critical government programs.
Planning for Your Child’s Transition to Adulthood
When minor children with disabilities approach age 18, families face unique considerations that require proactive planning. Your child legally becomes an adult, meaning you no longer have automatic authority to make medical or financial decisions on their behalf—even if their disability prevents them from managing these matters independently. Without proper legal documents in place, parents may find themselves unable to access medical records, communicate with doctors, or handle basic financial tasks for their adult child.
Health care proxies and powers of attorney establish the legal framework allowing you to continue providing support after your child reaches adulthood. If your child cannot execute these documents due to cognitive limitations, guardianship or conservatorship may be necessary. These court proceedings grant a parent or other trusted person legal authority over personal and financial decisions, though they involve ongoing court oversight and reporting requirements.
The estate planning process should also address what happens when parents are no longer able to provide care. Special needs trusts ensure financial security continues, but families must also consider living arrangements, care coordination, and quality of life. Our firm guides Massachusetts families through this transition, helping parents fully understand their options and create personalized solutions that protect their child while respecting their dignity and autonomy to the greatest extent possible.
Coordinating Special Needs Planning with Your Overall Estate Plan
Special needs planning doesn’t exist in isolation—it must integrate with your family’s broader estate planning goals. Without coordination, well-meaning provisions in a will or retirement account beneficiary designation could inadvertently disqualify your loved one from Medicaid, Supplemental Security Income SSI, and other government programs they depend on for medical care and basic needs. Even a modest inheritance received directly, rather than through a properly structured trust, can disrupt benefits eligibility.
Comprehensive planning examines how all your assets—including life insurance, retirement accounts, real estate, and investments—pass to the next generation. Third-party trusts can be named as beneficiaries of these accounts, ensuring funds provide funding for your special needs child without affecting their benefits. If you have other children, your plan must balance providing for all family members while addressing the often greater financial needs of a child with disabilities.
Tax planning also plays a role, particularly for families with significant assets. Our experienced attorneys work alongside your financial advisors and accountants to develop strategies that maximize resources available for your family’s future. Whether you’re establishing a new plan or updating existing documents after receiving a personal injury settlement or inheritance, we provide guidance tailored to your unique situation. Contact our Greater Boston area law firm for a free consultation to discuss how special needs planning fits within your overall estate planning objectives.
Contact Us Today to Take Care of Your Loved One
The beauty of a special needs trust is that it enables government programs to take care of your loved one’s basic needs while the trust provides for all the extras that make life more comfortable and fulfilling. If you want to make sure your loved one will be well provided for, contact our knowledgeable Massachusetts special needs trust lawyer today.